Nigerian oil-for-infrastructure deal 'a bust'

A recent report from London think-tank Chatham House has examined the causes of the respective failure and success of the oil-for-infrastructure policies in Nigeria and Angola.

The study concluded that poor governmental management on Nigeria's part is largely to blame for the programme going bust.

Contrarily, the strategy - in which Asian companies committed to investing in future infrastructure projects in exchange for a foothold in the oil sector - help to propel Angola to the role of the second largest supplier of oil to China in 2008.

The paper stated: "The failure of the oil-for-infrastructure deals in Nigeria was due to the failure of the Obasanjo government to manage the scheme, whereas Angola has been much more successful in managing the scheme."

The paper concluded by highlighting the need for foreign investment to come with a true understanding of political context.

Nigerian petroleum minister Rilwanu Lukman recently told reporters that oil production - which had dropped to 1.3 million bpd because of rebel fighting - had risen to about 1.7 million bpd.